Fitch Ratings said it upgraded Jebel Ali Free Zone's (JAFZ) long-term issuer default rating (IDR) to 'BBB-' from 'BB-' with an outlook “Stable”.
The ratings agency also upgraded JAFZ’s Sukuk (2019) Limited's senior secured rating to 'BBB-' from 'BB-'. The ratings have been removed from Rating Watch Positive (RWP), Fitch said in a statement.
“The upgrade and alignment of JAFZ's rating with its parent, DP World (BBB-/Stable/F3), reflects Fitch's assessment of strong links between JAFZ and its new owner under its parent and subsidiary rating methodology,” the ratings agency said, adding that it expects the acquisition of JAFZ by DP World “to be positive for the group's operating efficiency at the Port of Jebel Ali in Dubai.”
The port operator’s ownership of the free zone will enable the group to enhance port access layout, allow it to expand its logistic capacity and access to support the ongoing growth of Jebel Ali port and improve integration of the port area with the new Al Maktoum International Airport, Fitch highlighted.
“Any downgrade or revision of the outlook to Negative for DP World would result in Fitch reassessing the current alignment of the parent and subsidiary ratings,” Fitch added in its report.
